Australian housing finance rises in February

JamesGlynn

SYDNEY--Australian housing finance rose in February as record low interest rates continue to stoke a recovery in mortgage lending, especially to investors.

The number of Australian home-loan approvals rose a seasonally adjusted 2.3% in February from January, the Bureau of Statistics said Wednesday, the strongest monthly gain since September.

Economists surveyed ahead of the announcement had expected a rise of 2.0%. The value of loans for investment housing rose 4.4% from a month earlier, the bureau said.

Australia's central bank is attempting to wean the resource-rich economy off its reliance on mining investment by keeping interest rates at a record low 2.5% to spur growth in other areas. But it is increasingly worried about rising home prices, with a disproportionate number of people buying homes for investment purposes compared with those seeking homes to move into. The surge has fed fears of a house-price bubble that would destabilize the country's banks and economy if it were to burst suddenly.

Finance approvals to build new houses rose 0.8% in February from January. Approvals to buy new homes fell 5.0%, while lending for already built houses rose 3.0% in the month.

Company

Dow Jones Network

Intraday Data provided by FACTSET and subject to terms of use.
Historical and current end-of-day data provided by FACTSET.
All quotes are in local exchange time.
Real-time last sale data for U.S. stock quotes reflect trades reported through Nasdaq only.
Intraday data delayed at least 15 minutes or per exchange requirements.